scholarly journals Financial Sector Development and Investment in Selected ECOWAS Countries: Empirical Evidence using Heterogeneous Panel Data Method

2020 ◽  
Author(s):  
Chimere Iheonu ◽  
Simplice Asongu ◽  
Kingsley Odo ◽  
Patrick Ojiem
Keyword(s):  
Panel Data ◽  
Empirical Evidence ◽  
Financial Sector ◽  
Financial Sector Development ◽  
Heterogeneous Panel

scholarly journals The Effect of Financial Sector Development on Economic Growth of Selected Sub-Saharan African Countries

2020 ◽  
Vol 23 (2) ◽  
Author(s):  
Dagim Tadesse Bekele ◽  
Adisu Abebaw Degu
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Private Sector ◽  
Financial Institutions ◽  
Adult Population ◽  
Financial Sector ◽  
Dynamic Panel Data ◽  
Sub Saharan Africa ◽  
Financial Sector Development ◽  
Sub Saharan

Finance-growth nexus is among the main debatable issue in economics and policymaking. So, this research tried to look at the effect of financial sector development on the economic growth of 25 sub-Saharan Africa countries by using panel data for time 2010-2017. Precisely, three dynamic panel data models which look the effect of financial sector depth, access and efficiency on economic growth were estimated by two-step system GMM estimation. In this research, credit extended to the private sector per GDP, commercial bank branch per 100,000 adult population, and Return to assets were used as a proxy for financial sector depth, access, and efficiency, respectively. Accordingly, the results revealed financial sector depth, access, and efficiency have a positive and statistically significant effect on the economic growth of these countries.  It is therefore recommended for the concerned bodies that broadening the depth of financial institutions by giving more credit for the private sector is essential. Besides, the financial institutions will have to be expanded to increase their accessibility to the mass and have to take some measures which promote their efficiency. 

scholarly journals Institutional Quality and Financial Sector Development: Empirical Evidence from Nigeria

2018 ◽  
Vol 7 (1) ◽  
pp. 1 ◽  
Author(s):  
Fisayo Fagbemi ◽  
John Oluwasegun Ajibike
Keyword(s):  
Empirical Evidence ◽  
Financial Development ◽  
Good Governance ◽  
Developing Economies ◽  
Institutional Quality ◽  
Financial Sector ◽  
African Countries ◽  
Financial Sector Development ◽  
Long Run ◽  
Short Run

In view of the indispensable role of financial sector in both emerging and developing economies, there has been a notable spotlight on the financial sector development over the years in most African countries. Nonetheless, there are only a few studies on this topical issue, particularly for Nigeria. Hence, this study examines the long – run and short – run dynamic relationship between institutional quality and financial development in Nigeria over the period of 1984 – 2015 using Auto-Regressive Distributed Lag (ARDL) bounds test approach to cointegration. Using two different indicators (Private credit and M2) of financial development, the results consistently show that institutional factors do not have significant effect on financial development in the long – run as well as in the short – run. Furthermore, the empirical evidence indicates that regulatory quality and governance system (institutions) do not necessarily contribute to financial development in a feeble institutional environment, specifically in Nigeria. Thus, our findings suggest that whilst weak institutions could increase the risk of limiting the functioning of financial system, good governance and strong institutions are the essential ingredient of financial development in Nigeria. As a consequence, policies aimed at strengthening the quality of institutions and governance should form the major policy thrust of government (policy makers). These could help improving financial sector development in Nigeria.

scholarly journals The convergence of financial sector in Asia

2021 ◽  
Vol 10 (6) ◽  
pp. 166-173
Author(s):  
Maria Pinita Angelia ◽  
Rudi Purwono
Keyword(s):  
Stock Market ◽  
Empirical Evidence ◽  
Financial Sector ◽  
Estimation Technique ◽  
Method Of Moment ◽  
Macroeconomic Variables ◽  
Financial Sector Development ◽  
Development Indicator ◽  
Private Credit ◽  
Generalized Method Of Moment

This study aims to identify the convergence of financial sector development and the effect of macroeconomic variables on each financial sector development indicator in Asia. The sample used consists of 24 countries in Asia during the period 2010-2018. Identification of convergence using ?-convergence absolute and conditional. Indicators are used to represent the development of the financial sector namely private credit, liquid liabilities, stock market capitalization, and stock market turnover. Empirical evidence was based on the Generalized Method of Moment (GMM) estimation technique. The results showed that there was convergence in Asia and that macroeconomic variables had a significant effect on the development of the financial sector.

scholarly journals Rethinking the financial Kuznets curve in the framework of income inequality: Empirical evidence on advanced and developing economies

2019 ◽  
Vol 8 (4) ◽  
pp. 176
Author(s):  
Onur Özdemir
Keyword(s):  
Economic Development ◽  
Income Inequality ◽  
Empirical Evidence ◽  
Significant Role ◽  
Developmental Process ◽  
Developing Economies ◽  
Financial Sector ◽  
Kuznets Curve ◽  
Financial Sector Development ◽  
Negative Link

Contrary to the empirical findings that there is a negative link between financial sector development and income inequality, we introduce a different result: in the earlier stages of the financial and economic development, the level of income inequality decreases, but with an ongoing developmental process, the later stages show that the above-mentioned link between finance and inequality turns into positive within the framework of financial Kuznets curve. In terms of finance-inequality nexus, we find that neither markets nor institutions play a significant role for the decrease in income inequality. When the results are measured within this context, the study concludes that the U-shaped financial Kuznets curve hypothesis is valid in the sample countries.

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